Watchman (YAGR-16) was laid down on 17 January 1945, under a Maritime Commission (MARCOM) contract, MC hull 2343, as the Liberty Ship Vernon S. Hood, by J.A.

[3][5] Following a shakedown cruise in the Gulf of Mexico, the freighter was turned over to the Overlakes Freight Corporation, to be operated by that firm under a contract with the MARCOM.

Later that year, she was placed out of service and was berthed with the James River Reserve Fleet, Lee Hall, Virginia.

After transiting the Panama Canal, and visiting Acapulco, Mexico, she arrived in her new home port, San Francisco, California, on 11 April.

She operated from her base at San Francisco, during her entire naval career, spending an average of 200 days per year actually at sea engaged in picket patrols.